Stocks to Buy: Shares of this 'super compounder' can rise another 30%, UBS predicts
Published on 17/10/2025 09:44 AM
Stocks to Buy: Shares of this 'super compounder' can rise another 30%, UBS predictsAccording to UBS, Max Healthcare is well-positioned to deliver both capacity expansion and earnings growth. The brokerage said that a CGHS price increase would provide a meaningful tailwind for the company.By Meghna Sen October 17, 2025, 9:44:37 AM IST (Published)1 Min ReadChoose CNBC TV18 on Google
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Shares of Max Healthcare Institute Ltd. opened higher on Friday, October 17, after Swiss investment bank UBS raised its price target on the stock, describing it as a "super compounder."
UBS increased its price target on Max Healthcare by 15% to ₹1,550 from ₹1,350 earlier. The new target implies a potential upside of around 30% from the stock's closing price on Thursday. The brokerage has also maintained a 'Buy' rating on the stock.
According to UBS, Max Healthcare is well-positioned to deliver both capacity expansion and earnings growth. The brokerage said that a Central Government Health Scheme (CGHS) price increase would provide a meaningful tailwind for the company.
UBS estimates an 18% compound annual growth rate (CAGR) in bed additions between FY25 and FY28, with around 80% of new capacity coming in Metro and Tier-1 markets.
The brokerage expects Max Healthcare to deliver EBITDA and earnings per share (EPS) CAGRs of 30% and 33%, respectively, over FY25–28, which justifies its premium valuation.
Max Healthcare shares are now trading 0.85% higher at ₹1,185.30. The stock is up 4% in 2025 so far.
With inputs from Nimesh ShahContinue ReadingNote To ReadersDisclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!TagsMax HealthcareMax Healthcare Instituteshare market today